Link community gradually unfolds its capacity in complex network research. In this paper, a novel link similarity measure on line graphs is proposed. This measure can be adapted to different types of networks with an adjustable parameter. We prove its value converges to a limit on line graphs with the relationship of the nonneighbor links taken into account. Based on this similarity measure, we propose a novel link community detection algorithm for link clustering on line graphs. The detection algorithm combines the novel link similarity measure with the classic Markov Cluster (MCL) Algorithm and determines the link community partitions by calculating an extended modularity measure. Extensive experiments on two types of complex networks demonstrate the effectiveness, reliability and rationality of our solution in contrast to the other two classical algorithms.